Hello Mike,
Please could I ask a couple questions?
1.
When calculating the increase of Robby's initial 5% stake in Zinc I calculate:
5 (new value) - 2 (purchase price) = 3 (gain)
but ACCA's answer has:
5 - 2 - 1 = 2
Please could you tell me what the "-1" is for?
2.
Should goodwill be calculated for the date of the LAST share acquisition? (I noticed that a provisional net asset valuation on date of acquisition was updated with a final net asset valuation at the end of the financial year - this was then used to calculate goodwill) But generally is it correct to say that net asset valuation changes that occur after the date of acquisition do not affect the goodwill?
Thank you,
Dan
Please could I ask a couple questions?
1.
When calculating the increase of Robby's initial 5% stake in Zinc I calculate:
5 (new value) - 2 (purchase price) = 3 (gain)
but ACCA's answer has:
5 - 2 - 1 = 2
Please could you tell me what the "-1" is for?
2.
Should goodwill be calculated for the date of the LAST share acquisition? (I noticed that a provisional net asset valuation on date of acquisition was updated with a final net asset valuation at the end of the financial year - this was then used to calculate goodwill) But generally is it correct to say that net asset valuation changes that occur after the date of acquisition do not affect the goodwill?
Thank you,
Dan
